By Tiernan Ray

$4.5 billion will be paid to the investor group led by Warburg Pincus that owns Bausch, while $4.2 billion will be used to pay off Bausch debt, Valeant said.

Valeant will issue $1.5 billion to $2 billion in equity to fund the deal, and has in addition secured the help of Goldman Sachs (GS) to raise debt.

Valeant said Bausch’s business, which will be run as a division of Valeant under the Bausch name, will be immediately accretive to Valeant’s earnings per share. Bausch is expected to have $3.3 billion in revenue this year and $720 million in Ebitda. Valeant expects “at least $800 million” in cost synergies by the end of next year.

Valeant shares ended last week up $9.80, or 13%, at $84.47, on Friday, following the original rumors of the deal.

About Stocks To Watch

Earnings reports, corporate strategies and analyst insights are all part of what moves stocks, and they’re all covered by the Stocks to Watch blog. We also look at macro issues, investor sentiments and hidden trends that are affecting the market. Stocks to Watch gives you the full picture of the U.S. stock markets, all day long.

The blog is written by Ben Levisohn, a former stock trader who has covered financial markets for the Wall Street Journal, Bloomberg and BusinessWeek.